How to Apply for Alternative Fuel Tax Credit?

It seems that being a good steward of the environment these days pays dividends. The government has created several tax credits for buying vehicles that run on things like ethanol, alternative fuel and electricity.

There is more than one alternative fuel tax credit, and depending on the vehicle and fuel you choose, there are a number of tax credits you may qualify for. These credits are according to the alternative fuels index. Below, we’ll look at how each alternative fuel tax credit looks and how you can qualify.

Tax Incentive for Electric Vehicles

With the big push being electric cars, it is not unbelievable that these are some of the few incentives remaining. Some 2012 models can get up to $7,500 federal tax credits on a new purchase.

Hybrid Tax Credit

Just about the only tax credit left for a hybrid lies on the Chevy Volt. This is a surprisingly nice automobile which has been highly rated by experts. It is eligible for up to $7,500 tax credit.

These are federal tax credit programs. Do not forget to look for state funded tax credits or incentives for alternative fuel vehicles.

To claim these tax credits, the purchaser of the vehicle must download and complete proper forms, an example is IRS form 8910. There are also other credits available for alternative fuel equipment. To claim that credit the purchaser of the equipment must complete IRS form 8911. If unsure about any of the above tax credits, speak to a tax professional.

The information supplied in this article is not to be considered as medical advice and is for educational purposes only.